NOTE 15—SUBSEQUENT EVENT

Rights Offering

On July 22, 2020, the Company completed a Rights Offering wherein the Company sold an aggregate of 18,000 units consisting of an aggregate of 18,000 shares of Series F Convertible Preferred Stock and 45,000,000 warrants, with each warrant exercisable for one share of Common Stock, resulting in net proceeds to the Company of approximately $15.8 million, after deducting expenses relating to the Rights Offering, including dealer-manager fees and expenses, and excluding any proceeds received upon exercise of any warrants.

Amendment to PMB Loan

On July 30, 2020, the Company entered into the First Amendment to the PMB Loan. Under the First Amendment to the PMB Loan, the Company obtained a forbearance waiving non-compliance through August 1, 2020 subject to certain conditions. In addition, the First Amendment to the PMB Loan modified the loan covenants to include requirements that (a) on or before July 31, 2020, the Borrower shall have received net cash proceeds in the amount of at least $8.0 million from the issuance of equity securities and those funds are deposited into accounts maintained by PMB and (b) the Company shall maintain unrestricted cash at PMB in an aggregate amount of $1.5 million

Amendment to Payment Protection Program Loan

In July 2020, the Company amended the provisions of its PPP loan.  The amendment modifies the original payment deferment period from six months to the date that the SBA remits the Company’s loan forgiveness to PMB or if no forgiveness is requested to ten months after the end of the 24-week measurement period. The amendment also increases the amount of non-payroll costs eligible for loan forgiveness from 25% to 40%.

Sixth Amendment to SWK Loan

On August 12, 2020, the Company entered into the Sixth Amendment to the Credit Agreement (“Sixth Amendment”). Under the Sixth Amendment, the interest only period on the loan is extended to May 2022, the loan maturity date is extended to May 9, 2024, the financial covenants are adjusted, and a $0.7 million repayment of the principal amount was required upon execution of the agreement.

Additional RSU Grants

In August 2020, the Company granted approximately 1.2 million RSUs under the 2018 Plan as part of its 2020 Employee Bonus plan. Approximately 1.0 million of these awards vest upon achievement of certain performance targets.